♪ gerri: president obama unveiling a gun-control package with sweeping new rules. here's the breakdown. universal background checks for all gun buyers. banning of certain semiautomatic rifles. a 10 round limit on ammunition magazines and a request for gun violence research. all of this would need congressional approval in addition to 23 executive orders.

what the white house calls executive action. with these measures, if implemented, prevent future tragedies? here for a debate is jeffrey shapiro. and michael balboni, former homeland security adviser president obama. michael, let's start with you. you say this is another attempt to create a one-size-fits-all solution to gun control. what do you think should happen? >> i think we ought to take the approach that we used beforehand. a lot of us out ere for the assault weapons ban, and during that time, you didn't hear people saying i can't hunt. it was in this cry new york state. i voted for that bill and it as for a long period of time, it went away. now the question is what we bring back? it went away because people wanted to get rid of it. jeff, is that the right-wing view? you think it is a soluti to

the issues? how do you prevent violence like what we saw in newtown, connecticut? >> one of the things that the assault weapons ban didn't do is reduce violence or gun violence or killings. reports by the justice department have confirmed that the assault weapons ban did very little if not nothing to reduce gun violence in this country. i don't see the point in going down that road again. the biggest mistake we've made since everyone is so emotional over the tragic shootings at sandy hook is make a decision before been overdoing. we need to have congressional hearings we know the facts i know the evidence and the legislators are going to be the architects o these new these new laws actually know the facts and make educated decisions. gerri: i have to say that i have looked at everything the president will have to tell you that a lot of people are

describing this as aggressive. i think it's kind of a wiki. look at some of the language in some of the executive action. as in the president going to do this anyway? maximize enforcement efforts to prevent gun violence. i think at the end of the day, what is interesting about the president's demands is that they didn't go to the heart of what liberals will i am surprised that. >> he did talk about the fact that you have to take the high-capacity magazines don't attend. and at this point, they did not have an impact on the statistics of crime, but can you tell me what the constitutional violation was legal from 30 rounds to 10 rounds. is there something that is apparent in the? >> can answer that question? >> i can. there is a constitutional violation because when i was in the district of columbia, u.s. supreme court ruled that guns in common you should be allowed to be kept in ople's homes for self-defense. we all know that there are an overwhelming number of handgun security more than 10 rounds at

a time. so to say that people don't have the right to have those guns in their homes for self-defense in my opinion could be a constitutional violation of the second amendment. >> is interesting. we brought him in because we thought that what you wrote in "the wall street journal", getting rid of guns in the district of columbia. and this was a very tough measure to try to reduce violence. what happened? >> unfortunately, gun violence actually increased. it was counterintuitive and tragic and unfortunate. but what we saw is that it embolden criminals because they realize that people could not defend themselves. all that gun bans have done is increase violent crimes and endangers civil liberties and i has created an undue burden upon law enforcement could start them from controlling and violent crimes in progress. they just don't work. >> the sullivan law basically requires that you have concealed weapons but you have to permit for that and the gun violence in

new york state state is the lowest it has been in 30 years. they want with what jeff respond. when you make of that? >> i would say that the new york police department is on the most effective in this country and i would also say that they have.a lot of things in new york to re-strategize police officers by putting them in high impact areas. they have added almost 1000 police officers in 2007 is a part of operation impact. i don't think you can attribute a lack of violence or a reduction in olence to a gun ban restriction. you must attribute it to good police work. gerri: for the president suggested today is that more police, more cops on the street -- i want to take you to a different aspect of this conversation today in children. the president had kids with them when he made his statement today. children that he said had written letters. then the nra putting out an advertisement that was unbelievable to me. talking about kids and violence.

you are checking out the footage of that right now. the nra saying why should the president's kids be protected by armed guards when our kids are not? very emotional on both sides. what do you make of it? that it is the well-worn playbook whenevethese things happen, there is always a response on bo sides. he had a passion that should be driv by crime statistics and whatever happens. >> how did you respond back? because i have to tell you that it seems like everybody is trying to manipulate my emotions here and make me forget about the facts and past and what actually works. what you say? >> i think that it is incredibly manipulative and tragic that anyone is using children as a part of this debate. we all know that guns can kill. we all know that it can kill anyone whether an adult or a child. this is an important issue that involves our constitutional liberties and law enforcement and we shouldn't be trying to please people's emotions by putting elementary school children on stage with the president or vice president to

make it seem that anyone that opposes his executive orders is against children. honestly, everyone wants to protect children and they should not be part of this debate. >> thank you both for coming in tonight. we appreciate your time. well, it's not just washington speaking on the gun issue. as usual, hollywood just can't help itself. a group called mayors against illegal guns recently posted a video online featuring a host of features that you will recognize. >> columbine, virginia tech, aurora, port hope, oak creek, newtown, connecticut, newtown, newtown, how many more? how many more? how many more colleges? how many more classrooms? how many more movie theaters? >> as of this afternoon, this advertisement has received over 6.5 million views on the list of celebrities including jamie foxx. now, he is the star of the film

"django unchained." it is joined on that list why "zero dark thirty", and "les miserables." and nearly half of those scenes, 30 involve guns. not all of the violence is real-world violence, but take gamester squad, for example, featuring sean penn. in fact from the film recently took out a scene where aunman shoots up a movie theater after the tragedy in aurora. look, i'm not advocating getting rid of violence in movies but i'm saying that maybe hollywood should stick to moviemaking and stay out of politics. that is what i think. now, we want tonow what you think. here's our question tonight.

is hollywood critical when it comes to gun control? la mancha gerriwillis.com, vote and i will share the results at the end of the show. >> coming up on "the willis report", republicans split on their debt ceiling stances? we have against the weight on what is really going on. and earnings season is in full swing. our expert is here to share the financial sea of hot on right now. and in hard times, what industry has thrived? even the wealthy are flocking in. the star of on stars, richardson is here to discuss how you can cash in. we are on the case next on "the we are on the case next on "the willis what are you doing?

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gerri: there is definitely a debt ceiling looming looming over boston. is there looming over boston. is there a fight looming in the republican party? will they hold line on spending cuts? with one this senator mike of utah. thank you for coming on the show tonight. let's start with something that senator mitch mcconnell had to say on this topic. the president has said that this is no time to talk about cuts. mitch mcconnell said over the past three decades, u.s. presidents and lawmakers from both parties have routinely use the debt limit debate to reform government spending. the president may not want to cut spending as part of the upcoming debt limit debate but it shows deficit reduction measures have increased and are about as standard in washington as a cherry blossom festival. i'm sure that you agree that? >> absolutely. i agree wholeheartedly with that assessment. that is why we need to have this discussion now. it is all the more appropriate for the president to be telling us we can't make any demands accompanying his request for yet another debt ceiling height.

gerri: how did you react to the presence tone in that last press conference when he talked about his upcoming debt ceiling despite? he seemed a little angrier you guys. >> yes, he did. he seemed annoyed at the fact that he had to deal with a coequal branch of government. a group of pesky individuals elected by the people. >> yes, that's right. we have the audacity to insist that we follow the law and that we continue to make the law and yes, we have our work cut out for us. >> i was noticing that since 1990, we have raised the debt ceiling 18 times. back in 1990 come the first time we raised it, the debt ceiling was $3.12 trillion. the debt ceiling is raised, the spending gets raised. and it never comes back down. >> that's right, it goes up and

it never comes back down. in the past, sometimes we have insisted on cuts along the way. now we're finding ourselves in a position where we have $16.5 trillion of debt and cuts are not going to cut it anymore. it has to be more than cuts. it needs to be permanent structural spending reform. that's what we need. >> what john boehner headset is dollar for dollar. spending cuts with debt ceiling heights. what should they cut? give me a list. you might we talk about it from the standpoint of cuts, don't think cuts are going to do the job. we have to permanently reform the way washington spends money. >> okay, somebody want to to do that. >> we do that is through an approach that we referred to in the last debt limit debate is cat cut cabin balance for the short of it is to say that we can raise the debt limit we're not going to raise the debt

limit, we shouldn't we put into place a balanced budget amendment to the constitution. one that requires congress to balance its budget each year. when it requires a super majority vote each time congress wants to raise the debt limit. that would get us on the right path. >> we already know that that's not going anywhere. it doesn't seem that you have the support for it. it's a nice thing to suggest. but at the end of the day, what is going to move the ball forward on getting federal spending under control. as a practical matter, don't you have to start with social security and medicare and medicaid pimiento to have to start with the tough stuff? >> i think you have to get there. but what i'm saying is that i think you have to start with the principle. you have to start with a rule that says we believe as a nation. we agree as a nation that we do have to get to the point where we balance our budget. then we have to put ourselves into a corner where we are going to be forced to do that. >> i feel like we are in a corner already senator. the whole country is in a corner, and we are waiting for

congress and we are waiting for capitol hill, the white house, for them to get together and make sensible changes on how this spending is going. we just can't afford this. >> yes, that's right, but we have to remember that nely 70% of all americans during the last debt limit debate agree that we should have a balanced budget amendment in place and we should put in place before we raise the debt limit. i haven't seen a whole. but recently i am confident that it is confident today if not higher. it's a typical thing to do. it's not ready to happen today, but unless we start explaining the need for, it's never going to happen, and it needs to happen. >> thank you for coming on tonight. it looks like pretty behind you. utah is nice. >> i live in a beautiful state. gerri: okay, a lot more to come this hour, including the star of the hit reality series on stars.

an example tonight of how public universities are spending their money. which is actually your money. we will break it down for you next.

gerri: up next, colleges competing in the

anyone breaking news the faa has just told airlines to temporarily stop flying boeing 787 dream liner planes. a string of issues of batteries and fuel links.

while the planes were grounded after one was forced to make an emergency landing. again, the faa has just told airlines to temporarily stop flying the boeing 787 dream liner planes. stop down 2% in after-hours trading and we will watch that story for you. >> back to the back of the emblem. we talk a lot about the problems facing college graduates. a lack of job opportunities, debt is another big problem. the average debt faced by newly graduated seniors is the highest it's ever been. $23,000. add up all the subdued in loan debt and it's over $1 trillion. now, one of the reasons is the pernicious inflation and college tuition and other costs. inflation in public schools and broader economic inflation each and every year. this past year was nearly 5%.

5%. each and every year, schools add bells and whistles to compete for your college-bound son or daughter squishing dollars. swimming pools and sushi bars and it goes on and on. did you go to school like that. >> i sure didn't. spending rises and tuition goes up as well. to say that they have their priorities screwed up is an understatement. usa today reporting that state universities are competing in division i sports tennis match at six times more per athlete than they spend to educate students. think about that. tuition is rising twice as fast as spending on academics. 92,000 in medium spending graphically. not even 14,000 on construction for regular students.

i love sports, but let's face it these things are a money maker. much of these budgets and support packages for coaches and hundreds of thousands of people who support those teams. as little johnny struggled to make tuition for yet another quarter. the priorities are all wrong nations which is sponsored by taxpayer dollars after all. it's time for one. coming up, then earnings this week and what does that mean for you and your money? and a popular reality show, but it's not just poor people. find out why it is the new cool thing to do. i am joined by the star rick i am joined by the star rick harrison coming up

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>> from the fox business studios in new york city, it is "the willis report" with gerri

willis. gerri: okay, wealthy people need fast cash, too. we are asking of the biggest names in the business. the self-proclaimed hustler from the hit television show "pawn stars" joins me now, rick harrison with an exclusive look. >> actually there is a clock and basically made with golde mercury. and yes, what they used to make these clocks is really dangerous. the people that made these rarely live past the age of 30 years old. gerri: so why are wealthy people visiting more often?

>> most people don't realize that up until the 1950s, palmtops were the number one form of credit in the united states. they are just becoming popular again. it's because of my tv show and a lot of other tv shows as well. it's a little bit more mainstream, and it's a way to get quick cash. if you need a few thousand dollars, it's really difficult to go to babysit and apply for the loan. when i watch the shows, i get so nervous about you that. the people that walk in the front doors, it can be pretty scary people. >> generally not in my store. that could be some other television shows that easy. i have a prey high end shopping on one of the few shots that you'll ever go to and see the cost of hanging on the wall.

>> okay, so you have some high-end stuff to show me. what kind of things you have in your store? >> well, it's the this season, so i bought a super bowl ring. [laughter] how much does that go for? >> this was pretty special, with super bowl rings it depends on the team and how popular the team is. this is the patriots from their first super bowl win. so it's critical for more money than some other gems. 60-gram. >> feature buttons are actually these are bugs that are actually part of the french court from the 1800s. i mean, these are all different things i have in my store. i have 17,000 different items, this is a view that we grabbed on the way out the door to bring to the sho. george washington actually was in the first president of the united states, performing of the constitution and we have the articles of confederation, john jay was president for a while, and here's something signed by

him. gerri: how much is that? >> that is $10,000. not only is it signed by john jay, but it is a bill to benjamin franklin to pay him some money in i love that kind of thing. the people that watch our show our big history buffs. >> this was arraigned onn tht is made -- i mean, basically it is a little gun that rarely comes out and can barely hear you. but it was a really cool thing right around 1868 or 1870. it never really caught on because it really doesn't work. so there are very few of them. gerri: ssu aside. how much are you asking that you. >> this one we are asking $12,000. gerri: okay, tell me what the people most often want to pawn? will kind of stuff you get from

them most typically? gerri: the most common thing is what? >> a lot of people try to sell jewelry. we found out really early that people borrow money and they rarely want to be on television. there are a lot of things around the house that gives you quick money. the way that i look at it, you know, a lot of times paying rent and taking care of your family is a lot more important than material stuff be one that is really true. have you come up with a price? >> a lot of times you can just look up auction catalogues, but then again you get something like john jay to benjamin franklin in order to bring gone where there is probably only 10 in existence for its. so you fly by the seat of your

pants. you figure it's pretty cool. well, people pay for it. gerri: what is cool is you are recently engaged. congratulations, that is wonderful news. and you are a big nerd and tell us about that. >> yes, i am a big book nerd. i've got a really cool book the other day and it basically means it was printed in the 1400s, the earliest books in print. those are really cool, i like to collect those and i also have a really big love or illuminated books, books that actually the pictures were hand painted because he basically didn't have the technology to put color in prints and books yet the one that's fascinating. come back again. we would love to have you back the one thank you so much for

being on the show. >> next time i will come back to. gerri: well, we all know that in reality shows on television like american idol, which premieres tonight on fox, and the ex-factor, survivor, america's got talent and the list goes on and on. with shows like the stars are gaining in popularity. in fact talk -- the highest rated cable reality shows in 2012. number five is american pickers. this follows a parent and teachers around the midwest and they have 5 million viewers. number four is gold rush on discovery. it focuses on alaskan miners searching for gold. also averages just over 5 million viewers and storage wars on a&e. in california, it went okay, the content is auction off. so the real gamble. number two is jersey shore on mtv. it attracted nearly 6 millioo

viewers. and the number one rated cable reality show is "pawn stars." it features our friend, who you just met, averages nearly 6.5 million viewers and 2012. all right, when we come back, what should we do if the irs comes after you and your money in a two of the biggest banks reporting today. it's not all good news. we will explain coming up next. [ male announcer ] where do you turn for legal matters? at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along,

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gerri: the debt ceiling deal and senator mike leigh.

with more on this, we have former republican senator of wyoming, former cochair f the definition. thank you for being on thh bus, we appreciate your time we are glad to have you any way we can get you. >> there are a lot of people that would like to give me. [laughter] gerri: you are always a hoot. let's talk about the debt ceiling debate. we are all focused on this week and the president has been talking about it. what is your view on whether spending cuts should be part of the debt ceiling debate? i think that would be a serious mistake. i'm a republican, i have been so since i voted for ike in 1962 and let me tell you ie mistake. you are not talking about one thing that has to do with cutting spending. you're talking about everything

and he paying your debts of the guys in the congress talk about an republican republicans drama. and every one of them has something to do with wanting ... and now you have to pay it. and you better pay and where your country is clearly facing a dire consequences. it shows that you don't give a whit about who's president. >> do you agree with the president and you think that we are risking what? a selloff in the market? 2001. >> what's going to happen if it comes to the worst case scenario here? >> somebody will say, don't forget, we all $16.4 trillion. half of that is owned by private people like your mother or somebody in the city hall or foreign governments and half of that is owned by china. at that point, there are people

who say no, i can see you don't hear that, i'm would loan you some more money because you are strong and healthy and happy. and to do that, i'm going to ask for more money for my money. i want more interest. >> let me ask you this question. people say the treasury is running the front door every day. it's not like if we hit the debt ceiling deadline that we will be defaulting on her back right away. so why should we worry about china right now yowell, i worry until we worry about china. i worry about your mother. let's get serious. when you owe money, that is the money of slaves. gold is the money of kngs. silver is the money of gentlemen, and get it straight. >> everybody who watches the show, i think they agree with you on that last statement. because they do not like that. and they certainly don't like the federal debt.

and we have led an effort to paint us down and get rational about it. what is your organization going to be doing during this debate? >> well, that's tough. we are not really organization. you know, you have the percent or coming of the moment of truth, you know, all sorts of wonderful people out there. you have the kids kicking back. you have all these sorts of things. all of these people doing good things. of these groups are teamed up. they laughed when laugh when they put this in. they should be sympathizing. don't they know that they need to do that? >> well, there was also a lot of support and we will talk to you again as this debate continues.

we appreciate your time today. thank you so much for getting on the phone with us [inaudible] gerri: have a great evening, we appreciate your time. okay, let's talk about thinking. big banks, goldman sachs, reporting big profits today. we will get to that in just a bit. but it wasn't all good news for jpmorgan, chairman and ceo. slashed in half as a result of last year's trading incident. we talk you a lot about that. it cost the company more than $6 billion. while morgan, chief investment outages, thank you for coming in tonight. >> the senator is a tough act to follow gerri: what you make of him getting a pay cut? doesn't matter at this point?

>> on one hand is being held accountable in a way. that's it. gerri: money talks. >> but if he had he he had a different work on the same identifier. the one you really think that? >> welcome a couple of years ago, they had one of these in the head i was fired. so it was something where he could've been. the something is being done to show accountability. >> we are seeing big earnings at goldman sachs. what do you make of this? is the banking sector back, you're going to continue? >> welcome i like the financial sector in general, as we were talking during the break. i think that things have gotten a little ahead ofthemselves. they are very expensive. the are still some risks out there, the margins are starting to deteriorate a little bit. >> we are seeing the stock price rise now. so is was it too much interview?

>> i think so. i like financials, but i'm focused more on processing banks. and i think that -- you know, i'm not saying that they are going to drop in to sell your goldman sachs and other big-name stocks, but i'm just saying that i would not be adding any new money to those positions right now. gerri: how do you figure out which insurers to go after? who make sense right now? i don't own all state and i don't do investment banking with them, but they are the second biggest insurance company out there. so i would say more consumer related type of thing is the one that is not going. >> it already has. already in my opinion. gerri: so this point at this point you're not going with the big guns. you're voting the way?

>> absolutely. but i do like financials. gerri: okay, rob, thank you so much. that was very brave of you and i'm impressed by her. gerri: still to come is my "two cents more" on government bathrooms and two weeks from today you will be able to start filing your tax returns. but what happens if the irs doesn't like what you have to say? we have steps to follow coming [ male announcer ] now many humana medicare plans come with a little extra help in the kitchen. in a first of its kind partnership with walmart, humana medicare plans now include 5% savings on great for you healthier foods at walmart! it's part of the vitality healthyfood program... and one more way humana medicare can help you choose what's good for your health and your wallet.

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gerri: the story of the ta payers dreadnoughts. one in every age we win that one in 2011. you can expect even more this year. especially for those high income earners. so what happens next? we have your bottom line coverage of crucial test in navigating the process. when he is the founder and president of diversified financial consultant. welcome back tthe show. >> thank you. gerri: i was mentioning that the irs really win after its people last year. how is this different? >> well, they go where the money. lots of people have the money. more important, they are targeting small business owners and these are the guys are taking, they have targeted them

and that is where the money is. gerri: okay, a lot of people will not be happy to hear that. let's talk about the rest. >> once people get dreaded notice in the mail, typically that is the irs looking for classification and clarification of information. they can come to your office to your account office. >> so i have have to go have to go to their office as a company, then you have to start worrying when you i would see have to find out out what the problem is inversely let's look atwhat specifically they are asking for. depending on what they are asking for, you roll over an ira or a 401k? you can answer that one on your own. anything other than not, hire a

professional. cpa or tax attorney. >> i would've thought he would've said so everything you know about whatever the issue is -- you are a lot more circumspect than that. >> yes, the letters you get in the mail will have a specific item that they're looking for. they could be looking at things like your expenses or business expenses into their questions and be very specific. gerri: okay, you said small businesses were targeted in 2013. let's talk about why. >> if you look at the average taxpayer, a w-2, there isn't much pushback. a small business owner has a lot of expenses. the uk the car after dinner wa't your wife? the irs is targeting where the money is. a lot of the expenses are up for grabs. >> they are high income taxpayers, these are the people who are in the crosshairs. foreign transactions would be more likely. is that i? >> is possible, especially for a larger business owner. i think travel entertainment and

things like that are expensive. anything that. you know, we define a small-business owner and under a hundred employees. we can be substantial employees. gerri: a lot of businesses use outside contractors. >> they will hire someone where it is a repair office where you work outside of their offices. the irs wants you to classify that individual is an employee. by god, withholding, medicare, payroll taxes, they don't want to do -- they have very strict rules on who is an employee or

contractor. >> we don't havea lot of time, have a lot of time, but he would like you if you unfortunately find out that you owe money, that is the time to create a payment plan with the irs. you have negotiated a settlement. this is what you owe them. even though she became ill at that point, you can avoid a huge pile of penalties and interest the. gerri: thank you so much. the same business, star of television in 1920. alcohol would trigger an era of moral prosperity. and actually cause more folks to drink legally. and they went to the extremes, carrying class, find from the lakers and fermenting on their own. and as a result, crime went up 24%. costing more than $300 million to enforce the law, prohibition also cost the federal government a total of $11 billion in lost

tax revenue. teachers need to be lots of america's most notorious criminals began their multimillion dollar exploits on the back of your black market. mobste there are patients who will question, why does my mouth feel dryer than i remember it to be? there are more people taking more medication, so we see people suffering from dry mouth more so. we may see more cavities, bad breath, oral irritation. a dry mouth sufferer doesn't have to suffer.

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gerri: president obama press in carson take action on curbing gun violence and is getting a lot of support from his bubble friends in hollywood. it de think hollywood is being hypocritical when it comes to gun control? here is what you're tweeting me. yes. guns for them, but not us. where were their action movies without guns? and what happens in hollywood needs to stay there, especially their opinions. we also asked on gerriwillis.com. tennant percent said of course there being hypocritical. one person said no.